Budget 2024 expectations: Govt’s stance on AI – Can we expect govt’s ‘AI Push’ visible in Budget Document?

28 Dec 2023 , 02:32 AM

The Indian government is promoting AI to a great extent and is paving the way for the Indian economy to be a powerhouse in AI and analytics. The central and state governments have also launched several schemes to push AI adoption in India.

A few of these initiatives are, “AI for all” by Niti Ayog and Chair at GPAI in the current G20 summit. Further, MeitY also plans to introduce IndiaAI, Bhasini Programme, and YuvAI for upskilling Indian youth by the central government.

Furthermore, several Indian states such as Tamil Nadu, Telangana, and Karnataka have launched government schemes to improve and develop skills, propel India Inc. and investments in this area, and bring the use of AI under the regulatory and governance umbrella.

With such an enhanced focus on AI, we expect that the Central Government may make a few announcements in favour of AI adoption and integration across businesses and governance systems. The interim Budget for FY 2024-25 will be presented by the honourable Finance Minister Nirmala Sitharaman on February 1, 2024. This would be the sixth consecutive budget presented by her since 2019.

What are the key budget expectations for AI in 2024?

According to a report presented by Deloitte, the government should increase investments in AI and work on identifying new research areas such as digital nudge for social good using AI, quantum computing in AI, Gen Chem and Computational Biology, Explainable AI (XAI), smart and connected cities.

It said that the role of governments in supporting academia-industry partnerships will be crucial.

Furthermore, it stated that India’s AI strategy focuses on social effects and has prioritized three sectors: agriculture, education, and healthcare. The aim is to find particular use cases that the government can adopt, with the greatest influence on society altogether.

In addition, a governance structure to ensure trustworthy AI is required, including everything from data sourcing and storage to the deployment of AI algorithms.

Recommendations

Digital Personal Data Protection Act (DPDP) is certainly a kickstart, however, the industry still requires a deeper dive to ascertain how each industry is making use of personal data and creating a balance between fostering innovation and regulating the use of data. It may include levying penalties for unethical use, etc.

There is also a need to develop a committee/program that will task each government department to prioritize innovation using AI in their respective areas.

Furthermore, AI technology may be utilized to improve the tax administration’s decision-making process, such as whether or not to file an appeal based on important factors.

Finally, a central council of AI/ML professionals in India is needed to standardize the curriculum for the public and to suggest/invest in new unexplored technology.